Baird cuts CNH Global stock rating, lowers price target to $15

On Monday, Baird analysts revised their outlook on CNH Global (NYSE:CNH) stock, downgrading it from Outperform to Neutral and adjusting the price target to $15.00, a decrease from the previous $16.00. The adjustment reflects a cautious stance on the agricultural and construction equipment company’s near-term growth prospects compared to its peers. InvestingPro data shows that five analysts have recently revised their earnings estimates downward, with the company’s revenue declining by nearly 20% in the last twelve months. The stock, currently trading at $12.88, appears overvalued according to InvestingPro’s Fair Value model.

The Baird analyst noted that while CNH Global could still experience some near-term upside relative to its competitors, this would largely depend on further multiple expansions. With a current P/E ratio of 13.01 and market capitalization of $16.09 billion, expectations are set for the company to maintain its guidance with the upcoming first-quarter earnings report, which is anticipated to show a more gradual earnings progression compared to its peers.

Additionally, the analyst highlighted the potential impact of dealer destocking on CNH Global’s performance. The upcoming earnings report from Titan Machinery (NASDAQ:TITN) on March 19, which is CNH’s largest dealer, is expected to provide further insights into this trend.

The downgrade comes despite the company’s fourth-quarter earnings call, where CEO Scott Wine discussed the challenges in predicting a recovery by 2026. According to the Baird analyst, the visibility of a future recovery remains low, and the stock’s performance after the first-quarter results will likely hinge on the nature of the market’s recovery.

Investors and market watchers are now looking ahead to CNH Global’s first-quarter earnings report, scheduled for May 1, 2025, which will be a critical indicator of the company’s current financial health and its ability to navigate a potentially uncertain future. For deeper insights into CNH Global’s financial outlook and comprehensive analysis, InvestingPro subscribers can access the detailed Pro Research Report, featuring expert analysis and key metrics among 1,400+ top stocks.

In other recent news, CNH Industrial (BIT:CNHI) reported a significant revenue decline of 23% in 2024, with total revenues reaching $17.1 billion. The downturn in the agricultural equipment sector was more severe than expected, affecting regions such as South America, Europe, and North America. The company’s fourth-quarter revenue for 2024 was $4.88 billion, marking a 28% year-over-year decrease. S&P Global Ratings revised its outlook on CNH Industrial to negative due to this larger-than-anticipated revenue contraction and forecasts further declines in the coming years. Analysts from CFRA and Citi have adjusted their price targets for CNH Industrial, with CFRA setting it at $13 and Citi at $15, reflecting cautious optimism despite the challenging market conditions. DA Davidson also raised its price target to $14, maintaining a neutral rating on the stock. CNH Industrial’s adjusted earnings per share for Q4 were $0.15, missing the consensus estimate of $0.19. Looking ahead, the company has provided a cautious outlook for 2025, forecasting adjusted EPS between $0.65 and $0.75, which falls below current analyst expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.